SINGAPORE, March 3 (Reuters) – The era of ultra-easy money is
drawing to an end for Singapore mortgage holders, with domestic
interest rates rising at their fastest pace in a decade in a
country that already ranks among the world’s most expensive
places to live.

The three-month Singapore interbank offered rate (Sibor),
used to set floating-rate mortgages, climbed to 0.78756 percent
on Tuesday. It has gained 33 basis points so far
this year, exceeding all the annual increases since 2005.
Analysts expect the rate to end 2015 at around 1.0 percent. The
surge has been fuelled by the Singapore dollar’s
weakness against the greenback. A softer Singapore dollar can
put upward pressure on local interest rates as investors seek
higher yields as compensation for holding a weakening currency.

Exacerbating the Singapore dollar’s fall and boosting Sibor,
the central bank in late January allowed the currency to
appreciate at a slower pace. Most economists polled by Reuters
expect the Monetary Authority of Singapore to further ease
policy next month. Analysts say three-month Sibor may stabilise
as the Singapore dollar adjusts to the policy shifts. Mortgage
borrowers will probably feel more impact from the rising Sibor
in the second half of 2015, as interest rates on mortgages tend
to be set every three months, said Michael Wan, an economist at
Credit Suisse.

Singapore’s real estate has already been stung by government
measures aimed at cooling the market, particularly in the
high-end private-homes segment. Higher mortgage rates will
dampen the broader home market dominated by government-built
housing now in the private sector and owned by ordinary
Singaporeans. The impact on discretionary spending by households
will likely be more evident in the second half, Wan said.

The outstanding amount of household mortgages rose nearly 37
percent to S$216.7 billion ($158.84 billion) at the end of 2014
from 2010 in a period of near zero interest rates. A typical
floating-rate loan for a government-built flat is worth about
S$300,000 with a tenure of around 25 years. If the loan was
taken at the start of 2014, the interest rate would have hovered
near 1.3 percent through the year, with three-month Sibor
roughly around 0.4 percent. The monthly loan repayment,
consisting of principal and interest repayments, would have been
about S$1,170. Assuming the mortgage rate is now re-set to 1.68
percent based on current Sibor levels, the repayment would
increase by roughly S$50, said Wayne Quek, a Singapore-based
mortgage consultant.
($1 = 1.3643 Singapore dollars)

TOKYO/SYDNEY (Reuters) – The dollar hit an 11-year high against a basket of major currencies on Monday, with the greenback gaining a broad lift after an interest rate cut in China dented the Chinese yuan and emerging Asian currencies.

The dollar rose to as high as 95.505 .DXY against a basket of major currencies, its highest level since September 2003. The dollar index last traded at 95.417.

The Australian dollar gained only a fleeting boost after China cut rates on Saturday, in the latest effort to support the world’s second-largest economy as its momentum slows and deflation risks rise.

After rallying to $0.7850 earlier on Monday, the Aussie dollar reversed course and slid 0.6 percent to $0.7763, coming under pressure as mixed local economic data and concerns about China’s slowing economy reinforced the case for more interest rate cuts in Australia.

The Reserve Bank of Australia (RBA) holds its March policy meeting on Tuesday and there is much speculation it could follow up a February easing with a cut to 2.0 percent.

Analysts are split on whether the RBA will deliver a follow-up rate cut. Should it stand pat, traders said the Aussie could see a relief rally. A cut could send the Aussie lower. AURATE1

“Given the higher expectation this month that the RBA could ease, expect the downside reaction will be somewhat more limited, although the immediate support between 0.7740 and 0.7770 should, nevertheless, still be at risk,” analysts at Macquarie Bank wrote in a note to clients.

“Technically, the more important support, and the one we need to break for bearish confirmation that the downtrend is continuing, is at 0.7620/0.7640.”

Some analysts said the greenback’s strength against the Chinese yuan and emerging Asian currencies in the wake of China’s rate cut helped bolster the dollar versus major currencies as well.

“China’s rate cut has triggered dollar-buying against the Chinese yuan and that is helping to spur broad buying of the dollar,” said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.

Okagawa said such broad dollar buying on the back of China’s rate cut was likely to prove short-lived, adding that the focus would probably shift soon to U.S. jobs data due on Friday.

Emerging Asian currencies fell against the dollar as China’s rate cut and its lower daily yuan guidance on Monday underscored expectations of further easing in the region to tackle slowing growth and deflationary pressures.

The euro eased 0.2 percent to $1.1176 EUR=. It touched a fresh one-month low of $1.1160 earlier on Monday.

The key focus this week is the European Central Bank (ECB) meeting on Thursday. Investors are keenly waiting for further details on its 1 trillion euro ($1.1 trillion) government bond-buying program, which begins this month.

The ECB may also decide whether to accept Greek government bonds as collateral for its direct funding, which the bank stopped doing at the start of February.

The dollar touched a two-week high of 119.95 yen JPY= and last traded at 119.86 yen, up 0.1 percent on the day.

TOKYO/SINGAPORE (Reuters) – The dollar took a breather after surging to a one-month high against a basket of currencies the previous day as U.S. economic data and comments from Federal Reserve officials prompted investors to raise their bets on a rate increase.

The dollar index eased 0.2 percent to 95.130 .DXY, inching away from a one-month high of 95.357 set on Thursday. The dollar index had rallied 1.1 percent on Thursday, bringing it close to the more than 11-year high of 95.481 hit on Jan. 23.

The euro edged up 0.1 percent to $1.1213 EUR=, but remained not far from a one-month low of $1.1184 touched on Thursday.

The euro was down 0.6 percent for the month after tumbling 6.7 percent in January, when the European Central Bank unveiled its government bond buying scheme, also known as quantitative easing (QE).

“ECB QE is going to cap any euro rebound. But I think the catalyst for next leg lower in the euro will come from the dollar side of the story,” said Sim Moh Siong, FX strategist for Bank of Singapore.

Data released on Thursday showed that the U.S. core consumer price index, which excludes food and energy costs, rose 0.2 percent in January, more than the 0.1 percent increase economists had expected, even as overall CPI fell 0.7 percent because of falling oil prices.

U.S. durable goods orders also rose 2.8 percent in January, though the upbeat readings were tempered by a bigger-than-expected rise in new applications for unemployment benefits.

“After the data, people are more comfortable about expecting a U.S. interest rate hike, and taking on long dollar positions,” said Kaneo Ogino, director at Global-info Co in Tokyo, a foreign exchange research firm.

“The dollar’s downside should be limited, as I think many people will use falls as a chance to buy on dips,” he said.

The dollar eased 0.2 percent against the yen to 119.15 yen JPY=, but remained above Thursday’s intraday low of 118.68 yen.

San Francisco Fed President John Williams and St. Louis Fed chief James Bullard both suggested on Thursday that the U.S. central bank might end its near zero interest rate policy soonerthan some traders expect.

Their comments came after Fed Chair Janet Yellen’s congressional testimony earlier in the week was interpreted by investors as indicating the Fed was giving itself more flexibility to raise interest rates later than June.

Divergent monetary policy expectations have bolstered the greenback against the yen, with Bank of Japan widely expected to keep its ultra-easy policy until it meets its goal of sustainable 2 percent inflation.

Japanese data published early on Friday showed core consumer prices rose 2.2 percent in January from a year earlier, slightly less than economists’ median estimate for a 2.3 percent annual gain.

Other data showed a larger-than-expected jump in industrial production, but also a rise in the unemployment rate last month, showing the economic recovery continues but not without areas of concern.

Later on Friday, investors will turn their focus to U.S. economic data ECONUS including a second estimate of fourth-quarter gross domestic product.

SINGAPORE/TOKYO (Reuters) – The dollar edged down against the yen on Wednesday after Federal Reserve Chair Janet Yellen suggested the Fed won’t be rushed into kicking off the U.S. interest rate tightening cycle.

In closely watched remarks before the U.S. Senate Banking Committee on Tuesday, Yellen said the Fed is preparing to consider interest rate hikes “on a meeting-by-meeting basis”.

Yellen also said any refinement of its language should not be read as an indication that it will increase interest rates at any particular meeting.

Dollar bulls were disappointed by the absence of a more concrete timeframe for beginning the Fed’s rate tightening cycle.

“While it is clear that the Fed still seems geared towards hiking rates, possibly mid-year, I think Yellen didn’t give a particularly concrete assessment of that,” said Mitul Kotecha, head of FX strategy, Asia-Pacific, for Barclays in Singapore.

The dollar slipped 0.2 percent to 118.73 yen JPY=. The dollar had set a 12-day high of 119.84 yen on Tuesday in a knee-jerk reaction to early headlines from Yellen’s testimony, but later gave back those gains as markets figured the Fed is in no hurry to raise rates.

However, the dollar didn’t move too far from recent levels, still moving inside the 118.11-120.48 yen range it has stuck to over the past two weeks.

“Yellen’s latest statements were taken as dovish more or less. But the removal of the word ‘patient’ at the March meeting now looks certain, and that would provide an opportunity to buy the dollar again,” said Daisuke Karakama, market economist at Mizuho Bank in Tokyo.

The euro edged up 0.1 percent to $1.1346 EUR=, having pulled up from Tuesday’s intraday low of $1.1288.

The euro zone’s approval of Greece’s reform plan, a requirement for Athens to receive a four-month loan extension, shored up the common currency.

The Australian dollar rose 0.6 percent to $0.7874 AUD=D4, aided by the greenback’s broad weakness and a survey showing that activity in China’s mammoth factory sector edged up to a four-month high in February.

The Australian dollar is often seen as a liquid proxy of Chinese growth prospects due to Australia’s large trade exposure to China.

TOKYO/SINGAPORE (Reuters) – The dollar edged higher against the yen on Tuesday, but traders were wary of making too many bets on the currency ahead of congressional testimony by Federal Reserve Chair Janet Yellen.

Yellen’s appearance before the U.S. Senate Banking Committee is drawing extra attention after dovish-sounding minutes from the Fed’s January meeting released last week dented expectations for an early interest rate hike, and hurt the dollar.

Markets will be listening closely for whether Yellen takes a dovish tone in her testimony.

“The more convoluted and muddled her message is on when rates will rise, the more negative it will be for the U.S. dollar. But even in this case, we do not expect the dollar to crash because rates are still poised to move higher,” Kathy Lien, managing director at BK Asset Management, said in a note to clients.

The greenback was broadly firmer ahead of Yellen’s testimony, but remained within its recent trading ranges.

Against the yen, the dollar edged up 0.2 percent to 119.08 yen JPY=, having traded in a range of 118.11 yen to 119.42 yen range since Feb. 16.

The euro was steady at $1.1330 EUR= after shedding about 0.4 percent on Monday as the lift gained from a weekend agreement on a loan extension between Greece and its creditors petered out.

The common currency rose 0.2 percent to 134.95 yen EURJPY=R, regaining a bit of footing after losing 0.6 percent on Monday.

Greece missed a Monday deadline for presenting a list of reforms to the euro zone, a condition for the loan extension. Athens said it will now provide the list on Tuesday.

The delay by itself is unlikely to be a major issue as long as the plan is presented in the end, said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo, adding that Greece may have needed extra time for domestic coordination.

“While it is unclear what kind of plan Greece will present today, it is hard to think that they will put forth something that ignores the troika’s wishes,” Murata said.

The New Zealand dollar came under pressure after a survey showed that business managers’ near-term inflation expectations eased in the first quarter, backing expectations that interest rates will be on hold well into next year.

The New Zealand dollar slid 0.7 percent to $0.7475 NZD=D4, pulling away from a one-month high of $0.7574 touched last week.

TOKYO/SINGAPORE, Feb 18 (Reuters) – The euro held steady on
Wednesday, finding some support as investors held on to hopes
that Greece will find enough common ground with its euro zone
partners and avoid a chaotic exit from the currency union.

The euro traded at $1.1405, staying above this week’s
low of $1.13195 hit on Monday.

Although Greece rejected a proposal to request a six-month
extension of its international bailout on Monday, market players
are betting that an agreement will be reached in the next couple
of weeks.

A source close to the government said Greece intends to ask
on Wednesday for an extension of a loan agreement with the euro
zone.

The source drew a distinction between a loan agreement and
the full bailout programme, which the new government insists is
dead.

Still, investors expect a compromise on the bailout
programme will be reached as failure to do so could lead to a
disorderly Greek exit from the currency bloc.

Until the standoff over Greece’s demands is resolved,
markets will likely stay on edge, limiting any gains in the euro
in the near term.

Against the yen, the euro stood at 135.87 yen,
down 0.1 percent on the day but well above Tuesday’s low of
133.96 yen.

The yen showed limited reaction when the Bank of Japan kept
its monetary stimulus programme unchanged, as expected.

The dollar last traded at 119.15 yen, down 0.1
percent on the day but little changed from levels seen ahead of
the BOJ’s policy decision.

The focus turned to a news conference led by BOJ Governor
Haruhiko Kuroda later on Wednesday. Heng Koon How, senior
currency strategist for private banking and wealth management at
Credit Suisse in Singapore, said Kuroda is unlikely to offer any
strong hints about the possibility of adding to the BOJ’s
monetary stimulus in the near term.

“I think it’s still premature, because he probably will need
to wait for the Q1 data first before having a view on whether
the BOJ the needs to expand policy,” Heng said, adding that
investors will be watching for any comments on the yen.

Japan economy minister Akira Amari said on Tuesday that
neither excessive yen strength nor excessive yen weakness was
desirable. If there is excessive yen weakness, that could
deviate from Japan’s economic fundamentals.

“I think that’s the clearest comment yet from the Abe
administration that they want dollar/yen to be stable around
here,” said Heng at Credit Suisse. While Kuroda may not talk
about foreign exchange, it would be interesting if here were to
make any comment, Heng added.

Later in the global session, attention will be on the
minutes of the U.S. Federal Reserve’s last policy meeting.
Traders will likely look for any signs of discussion on the
timing of a rate hike.

U.S. debt yields have surged in recent days, with 30-year
bond and benchmark 10-year note yields climbing to seven-week
peaks, on growing expectations the Fed could flag a possible
rate increase as early as June in its next monetary policy
statement.

The prospect of a Fed rate hike by mid-year helped to push
the dollar index to a 11-year high last month, and it has been
consolidating since then.

The dollar index last stood at 94.085, little changed
from late U.S. levels and off its January peak of 95.481.

SINGAPORE, Feb 17 (Reuters) – Singapore’s economy grew more
strongly than initially estimated in the final quarter of last
year as manufacturing output was revised higher, but the city
state’s outlook remained modest in the face of an uneven global
recovery.

Annualised growth came in at 4.9 percent in the
September-October quarter from the previous three months when
the economy expanded 2.6 percent, the Ministry of Trade and
Industry said on Tuesday. That was three times the government’s
initial estimate of 1.6 percent growth and easily beat analysts’
forecast of a 2.1 percent rise. (Click here for a detailed table
)

The higher growth rate is a welcome sign for policymakers as
the trade-reliant economy has struggled to motor on amid
lacklustre exports and a deteriorating global economic outlook.

“For the United States there is hope that at least improved
confidence is flowing into the trade figures. If you look at
other key Asian exporters such as Taiwan and South Korea, we are
starting to see some signs of early spring,” Selena Ling, an
economist at Oversea-Chinese Banking Corp.

The hopeful signs were evident in exports data published
separately on Tuesday.

Non-oil domestic exports (NODX) in January rose 4.3 percent
from a year earlier, International Enterprise Singapore said in
a separate statement. That beat a market pick of a 1.9 percent
increase in a Reuters poll.

“This is just one month data so actually we would prefer to
average out data from January to March period. It is encouraging
but I wouldn’t put my money on the January numbers,” Ling said.

Annual trade in goods and services is about 3.5 times the
size of Singapore’s economy. In late January, Singapore joined a
global wave of monetary easings as policymakers scrambled to
rejuvenate their economies and defuse the rising risk of
deflation.

Indeed, the full-year export figures highlighted the recent
weakness of NODX, which fell 0.7 percent in 2014 after shrinking
6.0 percent in 2013. It was the first time NODX fell in two
straight years since 2008-2009, when exports slid during the
global financial crisis.

MANUFACTURING BETTER

The GDP data showed the manufacturing sector contracted 2.5
percent in the fourth quarter from the previous quarter, but was
better than the government’s advance estimate of a 5.8 percent
contraction released in January.

The economy grew 2.1 percent in the October-December period
from a year earlier, higher than the earlier estimate of a 1.5
percent expansion. Analysts had forecast a 1.7 percent increase.

That brought full-year 2014 growth to 2.9 percent, up from
the initial estimate of 2.8 percent. Growth in 2013 was revised
up to 4.4 percent.

SYDNEY/SINGAPORE, Feb 11 (Reuters) – The dollar hit a fresh
one-month high versus the yen on Wednesday, bolstered by gains
in Treasury yields, while uncertainty over a new debt deal for
Greece kept the euro under a cloud.

The dollar edged up 0.1 percent to 119.57 yen. As of
0533 GMT, its intraday high was 119.67 yen, the dollar’s
strongest level since early January.

Trade was thin with Japanese markets closed on Wednesday for
a public holiday.

Helping to support the dollar was a rise in the benchmark
U.S. 10-year Treasury yield, which popped above 2
percent on Tuesday for the first time in a month on views the
Federal Reserve might lift interest rates by mid-2015.

The dollar’s near-term moves against the yen are likely to
be driven more by Federal Reserve rate rise expectations rather
than safe-haven buying of the yen, said Jesper Bargmann, head of
trading for Nordea Bank in Singapore.

“Having said that, I also think there is a risk that the
market may have gone in a little bit early,” he said, adding
that a near-term focus would be whether the dollar manages to
finish the week above 119.10 yen.

Richmond Fed President Jeffrey Lacker, an inflation hawk,
said on Tuesday that a June hike was an “attractive option”
while San Francisco Fed President John Williams said economic
conditions are “getting closer” to the point where it made sense
to think about starting to normalise policy.

Also weighing somewhat on the yen, Bank of Japan Governor
Haruhiko Kuroda said there was no criticism from the G20 of its
aggressive easing that had driven the yen lower.

Against the yen, the euro touched its highest level in about
three weeks at 135.47 yen. The euro last traded at
135.34 yen, up 0.1 percent on the day.

The common currency struggled to find direction against the
dollar and last traded at $1.1318, steady from late U.S.
trade on Tuesday.

Greece has made no progress so far in securing a new debt
agreement without the shackles of an austerity programme. Euro
zone finance ministers meet later in the day to discuss Greece
ahead of an EU summit on Thursday.

“Failure of the parties to find common ground or express
optimism on progress could add to market nervousness during
European evening/New York afternoon hours,” analysts at BNP
Paribas wrote in a note to clients.

The Australian dollar inched up 0.1 percent to $0.7776
. Earlier on Wednesday, the Australian dollar had edged
up to $0.7795 after domestic data showed strong consumer
confidence and a robust housing market.

Many major currencies have settled into ranges since
reaching multi-year troughs against the greenback as investors
searched for fresh impetus to adjust long dollar positions.

This can be clearly seen in the dollar index, which
has been drifting between 93.250 and 95.331 for two weeks since
peaking at an 11-year high of 95.481 on Jan 23. It was last at
94.750.

SYDNEY/SINGAPORE, Feb 11 (Reuters) – The dollar hovered near
a one-month high versus the yen on Wednesday, bolstered by gains
in Treasury yields, while uncertainty over a new debt deal for
Greece kept a cloud over the euro.

The dollar inched up 0.1 percent to 119.51 yen,
staying near Tuesday’s peak of 119.62 yen, which was the
dollar’s highest level since early January.

Trade was thin with Japanese markets closed on Wednesday for
a public holiday.

Helping to support the dollar was a rise in the benchmark
U.S. 10-year Treasury yield, which popped above 2
percent on Tuesday for the first time in a month on views the
Federal Reserve might lift interest rates by mid-2015.

The dollar may see further gains versus the yen in the near
term, supported by expectations for the Fed to start raising
interest rates later this year, said Jesper Bargmann, head of
trading for Nordea Bank in Singapore.

“I think the driver of dollar/yen is going to be more
expectations of the next Fed hike than it’s going to be safe
haven buying of the yen on the situation in Europe,” Bargmann
said.

“Having said that, I also think there is a risk that the
market may have gone in a little bit early,” he said, adding
that a near-term focus would be whether the dollar manages to
finish the week above 119.10 yen.

Richmond Fed President Jeffrey Lacker, an inflation hawk,
said on Tuesday that a June hike was an “attractive option” and
San Francisco Fed President John Williams said economic
conditions are “getting closer” to the point where it made sense
to think about starting to normalise policy.

Also weighing somewhat on the yen, Bank of Japan Governor
Haruhiko Kuroda said there was no criticism from the G20 of its
aggressive easing that had driven the yen lower.

Against the yen, the euro touched its highest level in about
three weeks at 135.47 yen earlier on Wednesday. The
euro last traded at 135.32 yen, up 0.1 percent on the day.

The euro zone common currency struggled to find direction
against the dollar and last stood near $1.1325, little
changed from late U.S. trade on Tuesday.

Greece has made no progress so far in securing a new debt
agreement without the shackles of an austerity programme. Euro
zone finance ministers meet later in the day to discuss Greece
ahead of an EU summit on Thursday.

“Failure of the parties to find common ground or express
optimism on progress could add to market nervousness during
European evening/New York afternoon hours,” analysts at BNP
Paribas wrote in a note to clients.

The Australian dollar inched up 0.1 percent to $0.7777
. Earlier on Wednesday, the Australian dollar had edged
up to $0.7795 after domestic data showed strong consumer
confidence and a robust housing market.

Many major currency pairs have settled into ranges since
reaching multi-year troughs against the greenback as investors
searched for fresh impetus to adjust long dollar positions.

This can be clearly seen in the dollar index, which
has been drifting between 93.250 and 95.331 for two weeks since
peaking at an 11-year high of 95.481 on Jan 23. It was last at
94.687.

TOKYO/SINGAPORE, Feb 6 (Reuters) – The euro eased versus the
dollar on Friday, with the near-term focus on whether U.S. jobs
data later in the day will bolster the case for the Federal
Reserve to consider raising interest rates around mid-year.

The euro eased 0.1 percent to $1.1469, after having
surged 1.2 percent the previous day in a short covering rally.

The euro’s rise on Thursday was helped by reports that the
European Central Bank had agreed to allow Greece’s national
central bank to grant its banks emergency funding of up to 60
billion euros.

Views that the Swiss National Bank had bought euros to
weaken the Swiss franc had also supported the common currency on
Thursday.

The euro has seen some sharp swings in recent sessions,
having tumbled earlier in the week after the European Central
Bank stunned investors by taking a hard-line stance, saying it
would not accept Greek bonds as collateral.

Greece’s aid deadline with the European Union, the ECB and
International Monetary Fund “troika” expires on Feb. 28.

“The Greek situation will remain a key factor at least until
the Feb. 28 aid deadline. The development is likely to peak next
week, giving time for at least one more round of upsets for the
market,” said Junichi Ishikawa, market analyst at IG Securities
in Tokyo.

“For now we can turn away from Greece and focus on U.S. jobs
data, which may provide an opportunity to slow the unwinding of
dollar-long positions that has been taking place,” Ishikawa
said.

Another solid U.S. payroll reading, coupled with a possible
rebound in wage growth, may revive recently-flagging views that
the Federal Reserve might consider raising interest rates as
early as mid-year and favour the dollar.

Non-farm payrolls probably increased 234,000 last month
after advancing 252,000 in December, according to a Reuters
survey of economists. It would be the 12th straight month of job
gains above 200,000, the longest streak since 1994.

Callum Henderson, global head of FX research for Standard
Chartered Bank in Singapore, said Standard Chartered’s baseline
expectation is that non-farm payrolls will increase by around
260,000.

The market could show a sharp reaction if the increase in
non-farm payrolls turns out to be either less than 200,000, or
more than 300,000, Henderson said, adding that such results
could lead to “quite a bit of volatility”.

The dollar index, which measures the greenback’s value
against a basket of major currencies, held steady at 93.556
. The dollar index has retreated over the past couple of
weeks after hitting an 11-year high of 95.481 on Jan. 23.

Against the yen, the dollar sagged 0.2 percent to 117.32 yen
, staying within a range of roughly between 116.00 yen to
119.00 yen seen since mid-January.

The Australian dollar rose 0.4 percent to $0.7827,
gaining a lift after the Reserve Bank of Australia’s quarterly
statement did not sound as dovish as some had expected.